# Maximus (MMS.US)

Canonical: https://gigainvestors.com/s/MMS

Analysis as of: 2026-10-16T07:30:17.760Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $60.24 per share; close as of 2026-10-15.

Estimated value: low $88.16 per share, central $128.60 per share, high $151.16 per share. Buy at or below the central value $128.60 per share. Valuation as of 2026-10-16T07:30:17.760Z; scenarios are not confidence intervals.

Expected annual return: 17.3% at the stated quote. About 17.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.13×

- FY2019: 0.11×

- FY2020: 0.08×

- FY2021: 0.10×

- FY2022: 0.07×

- FY2023: 0.06×

- FY2024: 0.09×

- FY2025: 0.11×

- LTM to Jun 2026: 0.11×

### moat: pass

- ROIC, median of available years: 30.9%

- ROIC, second-lowest year: 20.1%

- Typical minus recent gross margin: -1.5 pp

- Typical gross margin (annual median): 21.5%

- Recent gross margin (lower of latest and 3-year median): 23.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.2%

- ROIC including acquisitions, ten-year median: 16.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 59.4%

- FY2018: 53.4%

- FY2019: 43.5%

- FY2020: 28.1%

- FY2021: 25.3%

- FY2022: 20.1%

- FY2023: 19.0%

- FY2024: 33.7%

- FY2025: 38.5%

- LTM to Jun 2026: 26.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.22×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.6B

- Net income, five-year total: $1.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.8 pp

- Working capital / revenue, final three-year average: 11.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.23×

- FY2022: 1.38×

- FY2023: 1.36×

- FY2024: 1.04×

- FY2025: 1.22×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 53.4% vs 33.7%

- Per-share earnings: 2.69 to 4.99 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.5%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: $806M

- Cumulative retained earnings: $572M

- Diluted shares, 10-year annual growth: -1.5%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.0%

- Per-share value change: $2.30

- Per-share value, starting three-year median: $2.69

- Per-share value, ending three-year median: $4.99

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 2.3%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 53.4%

- ROIC, last three-year median: 33.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.69

- FY2017: $3.17

- FY2018: $3.35

- FY2019: $3.72

- FY2020: $3.39

- FY2021: $4.67

- FY2022: $3.29

- FY2023: $2.63

- FY2024: $4.99

- FY2025: $5.51

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.51×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.1%

- FY2017: -9.5%

- FY2018: -7.0%

- FY2019: -6.6%

- FY2020: -1.5%

- FY2021: -5.5%

- FY2022: -2.2%

- FY2023: -3.8%

- FY2024: -5.0%

- FY2025: -2.7%

## Holders

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Jan 2026 · "Why Maximus (MMS) Is Down 5.8% After Trimming 2026 Revenue Outlook On Segment Divestiture" (finance.yahoo.com, Feb 2026) · sales -3.4%

Story as of 2026-10-16T09:59:10.834Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.8% a year for ten years

- 2025-07-28: Maximus Secures $77 Mln U.S. Air Force Cybersecurity And Cloud Services Contract ([nasdaq.com](https://www.nasdaq.com/articles/maximus-secures-77-mln-us-air-force-cybersecurity-and-cloud-services-contract))

- 2025-08-12: MMS Q2 Deep Dive: Federal Segment Strength and Policy Tailwinds Support Guidance Upgrades ([finance.yahoo.com](https://finance.yahoo.com/news/mms-q2-deep-dive-federal-072810782.html))

- 2025-09-30: Maximus wins $62M contract extension to expand Pennsylvania health enrollment services ([seekingalpha.com](https://seekingalpha.com/news/4500341-maximus-wins-62m-contract-extension-to-expand-pennsylvania-health-enrollment-services?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-20: Maximus Guides FY26 Adj. EPS Above Estimates, Revenues Below - Update ([nasdaq.com](https://www.nasdaq.com/articles/maximus-guides-fy26-adj-eps-above-estimates-revenues-below-update))

- 2026-02-13: Why Maximus (MMS) Is Down 5.8% After Trimming 2026 Revenue Outlook On Segment Divestiture ([finance.yahoo.com](https://finance.yahoo.com/news/why-maximus-mms-down-5-021415622.html))

- 2026-08-06: Maximus (NYSE:MMS) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/maximus-nyse-mms-reports-sales-125842866.html))

### Sales · FY2025–2026

sales -3.4%; source https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm; observed 2025-11-20.

- FY2017: $2.5B 

- FY2018: $2.4B 

- FY2019: $2.9B 

- FY2020: $3.5B 

- FY2021: $4.3B 

- FY2022: $4.6B 

- FY2023: $4.9B 

- FY2024: $5.3B 

- FY2025: $5.4B 

- FY2026: $5.2B 

### Gross margin · FY2026

gross margin 24.4%; source https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm; observed 2025-11-20.

- FY2017: 24.5% 

- FY2018: 24.4% 

- FY2019: 20.5% 

- FY2020: 19.5% 

- FY2021: 21.2% 

- FY2022: 18.3% 

- FY2023: 19.0% 

- FY2024: 21.9% 

- FY2025: 23.0% 

- FY2026: 24.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 5.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm (filed 2025-11-20); FY2025: revenue 5431276000; grossProfit 1249883000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MMS.US: Maximus, Inc. operates as a provider of government services worldwide. The company operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Federal Services segment offers business process services, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, such as application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, data management, and infrastructure and engineering solutions. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; subsidized telephone services; and person-centered independent assessment services. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; and system implementation project management services. The Outside the U.S. segment offers BPS and technology solutions for international governments, including health and disability assessments, program administration for employment services, wellbeing solutions and other job seeker-related services, digitally-enabled customer services, and technologies for modernization. Maximus, Inc. was founded in 1975 and is headquartered in McLean, Virginia.

### Why customers stay

Margins ranged from 19% to 23% during 2023–25; it earns 30.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2023: grossProfit / revenue = 19%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2024: grossProfit / revenue = 21.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm (filed 2025-11-20); FY2025: grossProfit / revenue = 23%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); 10-year return on capital observations [[2017,0.5944412325826851],[2018,0.5337904922581648],[2019,0.4353712512089095],[2020,0.28119892826141485],[2021,0.2532208236781479],[2022,0.2013053549530918],[2023,0.19004656261252115],[2024,0.337143569015789],[2025,0.3845415615341829],[2026,0.2634546146790971]]; median 0.3091712486386019. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 447.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2016: growth capex 0; upkeep 46391000; cash acquisitions 46651000; owner earnings 203752000. Growth capex plus acquisitions / owner earnings = 0.2289597157328517.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2017: growth capex 0; upkeep 24154000; cash acquisitions 2677000; owner earnings 253249000. Growth capex plus acquisitions / owner earnings = 0.010570624168308661.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2018: growth capex 0; upkeep 26520000; cash acquisitions 0; owner earnings 256423000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2019: growth capex 0; upkeep 66846000; cash acquisitions 436839000; owner earnings 259436000. Growth capex plus acquisitions / owner earnings = 1.6838025563144667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2020: growth capex 0; upkeep 40707000; cash acquisitions 7066000; owner earnings 280763000. Growth capex plus acquisitions / owner earnings = 0.02516713384598398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2021: growth capex 0; upkeep 36565000; cash acquisitions 1798915000; owner earnings 358953000. Growth capex plus acquisitions / owner earnings = 5.011561402189145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2022: growth capex 0; upkeep 56145000; cash acquisitions 14295000; owner earnings 280478000. Growth capex plus acquisitions / owner earnings = 0.05096656422250587.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2023: growth capex 0; upkeep 90695000; cash acquisitions 0; owner earnings 220413000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); FY2024: growth capex 0; upkeep 114190000; cash acquisitions 0; owner earnings 318251000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm (filed 2025-11-20); FY2025: growth capex 0; upkeep 63213000; cash acquisitions 0; owner earnings 389537000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); Dividend observations: [[2016,11701000],[2017,11674000],[2018,11692000],[2019,63887000],[2020,70155000],[2021,68838000],[2022,68716000],[2023,68073000],[2024,72901000],[2025,68710000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm (filed 2025-11-20); FY2025: cash repurchases 447482000 USD.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MMS.US SharesStats.PercentInsiders = 1.7950000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.8% yearly over ten years; actual growth was 13.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); Ten-year compound average after fade. Initial solved rate -0.06415700046381839. Price 60.24; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.9529571274708535 → FY2025 6.7253155159613955. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $52.06 per share

- 2016-11: $55.29 per share

- 2016-12: $55.79 per share

- 2017-01: $55.14 per share

- 2017-02: $59.67 per share

- 2017-03: $62.20 per share

- 2017-04: $60.99 per share

- 2017-05: $62.08 per share

- 2017-06: $62.63 per share

- 2017-07: $60.36 per share

- 2017-08: $60.78 per share

- 2017-09: $64.50 per share

- 2017-10: $66.43 per share

- 2017-11: $69.08 per share

- 2017-12: $71.58 per share

- 2018-01: $68.18 per share

- 2018-02: $66.98 per share

- 2018-03: $66.74 per share

- 2018-04: $67.63 per share

- 2018-05: $60.90 per share

- 2018-06: $62.11 per share

- 2018-07: $64.81 per share

- 2018-08: $66.50 per share

- 2018-09: $65.06 per share

- 2018-10: $64.97 per share

- 2018-11: $71.12 per share

- 2018-12: $65.09 per share

- 2019-01: $70.13 per share

- 2019-02: $70.68 per share

- 2019-03: $70.98 per share

- 2019-04: $73.65 per share

- 2019-05: $71.25 per share

- 2019-06: $72.54 per share

- 2019-07: $73.51 per share

- 2019-08: $76.94 per share

- 2019-09: $77.26 per share

- 2019-10: $76.74 per share

- 2019-11: $74.65 per share

- 2019-12: $74.39 per share

- 2020-01: $71.75 per share

- 2020-02: $63.02 per share

- 2020-03: $58.20 per share

- 2020-04: $67.32 per share

- 2020-05: $72.02 per share

- 2020-06: $70.45 per share

- 2020-07: $74.21 per share

- 2020-08: $77.55 per share

- 2020-09: $68.41 per share

- 2020-10: $67.58 per share

- 2020-11: $71.81 per share

- 2020-12: $73.19 per share

- 2021-01: $75.06 per share

- 2021-02: $81.28 per share

- 2021-03: $89.04 per share

- 2021-04: $91.64 per share

- 2021-05: $92.67 per share

- 2021-06: $87.97 per share

- 2021-07: $89.00 per share

- 2021-08: $87.09 per share

- 2021-09: $83.20 per share

- 2021-10: $84.57 per share

- 2021-11: $75.45 per share

- 2021-12: $79.67 per share

- 2022-01: $77.32 per share

- 2022-02: $78.86 per share

- 2022-03: $74.95 per share

- 2022-04: $72.88 per share

- 2022-05: $64.89 per share

- 2022-06: $62.51 per share

- 2022-07: $66.85 per share

- 2022-08: $60.59 per share

- 2022-09: $57.87 per share

- 2022-10: $61.67 per share

- 2022-11: $70.30 per share

- 2022-12: $73.33 per share

- 2023-01: $74.85 per share

- 2023-02: $82.08 per share

- 2023-03: $78.70 per share

- 2023-04: $83.65 per share

- 2023-05: $80.96 per share

- 2023-06: $84.51 per share

- 2023-07: $83.76 per share

- 2023-08: $80.82 per share

- 2023-09: $74.68 per share

- 2023-10: $74.72 per share

- 2023-11: $83.49 per share

- 2023-12: $83.86 per share

- 2024-01: $81.12 per share

- 2024-02: $83.66 per share

- 2024-03: $83.90 per share

- 2024-04: $80.28 per share

- 2024-05: $86.10 per share

- 2024-06: $85.70 per share

- 2024-07: $92.89 per share

- 2024-08: $92.26 per share

- 2024-09: $93.16 per share

- 2024-10: $86.44 per share

- 2024-11: $74.50 per share

- 2024-12: $74.65 per share

- 2025-01: $75.29 per share

- 2025-02: $65.20 per share

- 2025-03: $68.19 per share

- 2025-04: $66.96 per share

- 2025-05: $72.51 per share

- 2025-06: $70.20 per share

- 2025-07: $73.86 per share

- 2025-08: $87.92 per share

- 2025-09: $91.37 per share

- 2025-10: $83.12 per share

- 2025-11: $86.09 per share

- 2025-12: $86.32 per share

- 2026-01: $94.44 per share

- 2026-02: $75.61 per share

- 2026-03: $64.10 per share

- 2026-04: $65.62 per share

- 2026-05: $61.93 per share

- 2026-06: $53.76 per share

- 2026-07: $60.25 per share

- 2026-08: $57.77 per share

- 2026-09: $53.19 per share

- 2026-10: $60.24 per share

## Annual estimated value (USD per share)

- FY2016: low $39.67 per share, central $55.89 per share, high $65.54 per share

- FY2017: low $43.82 per share, central $60.42 per share, high $70.56 per share

- FY2018: low $50.40 per share, central $71.28 per share, high $82.93 per share

- FY2019: low $50.71 per share, central $65.82 per share, high $76.83 per share

- FY2020: low $64.37 per share, central $87.99 per share, high $103.10 per share

- FY2021: low $90.17 per share, central $131.01 per share, high $153.79 per share

- FY2022: low $77.25 per share, central $97.93 per share, high $114.27 per share

- FY2023: low $86.57 per share, central $115.58 per share, high $135.32 per share

- FY2024: low $72.77 per share, central $98.07 per share, high $114.58 per share

- FY2025: low $85.09 per share, central $122.92 per share, high $144.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1032220/000103222025000053/mms-20250930.htm); period 2025-09-30, filed 2025-11-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Martin Whitman](https://gigainvestors.com/TA): 74,085 MMS shares; USD 3,983,000 reported position value; 0.64% of portfolio; new; quarter 2026 Q2.

# MMS — MAXIMUS Inc.

Held by 1 investor · USD 3,983,000 total · 2026 Q2 · reported price USD 53.76 (split-adjusted).
Page: https://gigainvestors.com/s/MMS

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Martin Whitman (https://gigainvestors.com/TA) | USD 3,983,000 | 0.6% | new |

## Total held by quarter

- 2020 Q3: USD 1,143,997 · 1 holder · USD 68.38
- 2020 Q4: USD 2,186,917 · 1 holder · USD 73.19
- 2021 Q1: USD 2,873,888 · 1 holder · USD 89.03
- 2021 Q2: USD 2,588,957 · 1 holder · USD 87.97
- 2021 Q3: USD 2,966,912 · 1 holder · USD 83.20
- 2021 Q4: USD 3,037,020 · 1 holder · USD 79.67
- 2022 Q1: USD 4,368,086 · 1 holder · USD 74.95
- 2022 Q2: USD 3,643,083 · 1 holder · USD 62.51
- 2022 Q3: USD 3,373,246 · 1 holder · USD 57.88
- 2022 Q4: USD 4,778,183 · 1 holder · USD 73.33
- 2023 Q1: USD 5,029,700 · 1 holder · USD 77.19
- 2023 Q2: USD 5,335,961 · 1 holder · USD 84.51
- 2023 Q3: USD 2,026,068 · 1 holder · USD 74.68
- 2023 Q4: USD 2,542,867 · 1 holder · USD 83.84
- 2024 Q1: USD 3,710,058 · 1 holder · USD 83.90
- 2024 Q2: USD 3,790,096 · 1 holder · USD 85.71
- 2024 Q3: USD 4,119,977 · 1 holder · USD 93.17
- 2024 Q4: USD 3,301,023 · 1 holder · USD 74.65
- 2025 Q1: USD 0 · 0 holders
- 2025 Q2: USD 0 · 0 holders
- 2025 Q3: USD 0 · 0 holders
- 2025 Q4: USD 0 · 0 holders
- 2026 Q1: USD 0 · 0 holders
- 2026 Q2: USD 3,983,000 · 1 holder · USD 53.76